[Global Times reporter Chen Zishuai Global Times special correspondent Zhen Xiang] According to the Nikkei Asian Review on the 26th, Australia-based mineral company Ioneer (Ioneer) recently said it has been approved by the U.S. Biden government to plan for the simultaneous mining of lithium and boron in the Rhyolite Ridge in the U.S. state of Nevada. Reports say this is the first approved lithium mine in the United States since the 1960s. The British media said the newly approved lithium mining project is part of the Biden administration's efforts to create a supply chain for electric vehicle batteries. Experts interviewed by the Global Times reporter said that the lack of supporting systems and costs and other issues make the construction of the U.S. lithium resources industry chain less than expected.

　　The review and assessment took six years

　　According to the official website of Ionier, the Rhyolite Ridge lithium and boron mine project will begin construction next year. Production is expected to begin in 2028, the Nikkei Asian Review quoted the company as saying. The company's CEO, Bernard Rowe, revealed that in the first phase, lithium carbonate production is expected to reach 22,000 tons per year, which will meet the demand for batteries for 370,000 electric vehicles. The mined lithium will be directly processed and handled locally.

　　The mine is reportedly the first lithium project approved by the Biden administration, for which the U.S. Bureau of Land Management has been reviewing and evaluating for more than six years. In addition to issuing the license, the Biden administration will provide a $700 million loan to Ionier. By that time, U.S. lithium production will be four times what it is today, according to the report.

　　Ionier said it has already found buyers for its lithium mine, including Ford Motor and Telstar Energy Solutions Ltd, a battery joint venture between Toyota Motor and Panasonic Holdings.

　　It's worth noting that there is only one lithium mine in operation in the U.S. - the Silver Peak mine, operated by U.S.-based Arbor in Nevada, which opened in the 1960s and has a production capacity of only about 5,000 tons per year. The Rhyolite Ridge lithium-boron project is the first lithium project to be approved in the 60 years since then.

　　U.S. to create an independent supply chain or too late

　　Public reports show that, because of its importance to the U.S. economy and national security, as well as supply chain vulnerability, lithium is the U.S. Geological Survey listed as one of the 50 critical minerals. Lithium batteries are heavily used in emerging markets such as mobile electronic devices, electric vehicles and grid energy storage.

　　The British “Financial Times” said, the United States is actually not a lack of lithium resources, the country's Geological Survey has just announced the discovery of 5 million to 19 million tons of lithium reserves under the ground in southwestern Arkansas, is 9 times the projected global demand for lithium for automotive batteries in 2030, but the United States of America's lithium processing capacity is still insufficient. Most of the world's lithium is mined in Australia or extracted from large salt lakes in South America and then processed in China, the report said. China accounts for more than 2/3 of the world's lithium refining capacity, and their lithium mine in Nevada will help break the dependence of U.S. customers on Chinese companies, said Bernard Rowe, CEO of Ionier.

　　The Global Times reporter learned that China has advanced technology and cost advantages in the field of lithium processing, and is able to extract and process lithium products efficiently and at low cost, which makes China an important base for global lithium industry processing. At present, the global lithium industry has formed the mode of “overseas resources + China processing”.

In an effort to boost the country's lithium processing capacity, the U.S. government also issued new guidelines last Thursday allowing producers to claim tax credits for the cost of mining and extracting key minerals, as long as they process some of the material. The Financial Times quoted analysts as saying that the approval of lithium mining and the provision of tax credits were important steps taken by Washington to incentivize the development of a domestic lithium mining and refining industry that could supply the electric vehicle industry.

　　True lithium research founder Mo Ke told the “Global Times” reporter on the 28th, the United States clearly want to establish their own electric vehicle lithium industry chain, one of the purposes is to get rid of the dependence on China's supply chain, however, when this desire can be realized, the current point of view to play a question mark. “Voice of America” said in an article earlier this year, observers pointed out that in the lithium industry chain, the United States to completely get rid of China, to create an independent supply chain may be too late.

　　Controversy and competition is difficult to ignore

　　It is worth noting that the approval of the lithium mining project is full of controversy. The Associated Press is concerned that at the end of 2022, the U.S. Fish and Wildlife Service listed an endemic wild plant called Tim's buckwheat in Nevada as endangered, and made it clear that the local mining industry poses the greatest threat to the endangered species. But then the Bureau in the U.S. government internal communication will be changed, claiming that the development of local lithium mine will not lead to the extinction of the Tim's buckwheat species, which has become the lithium project was given the green light to a key place. Environmental organizations have clearly voiced their opposition, and said they will file a lawsuit, how the subsequent development, the project will be affected by the lawsuit remains to be seen.

　　In addition, Ionier will also face competition from several other lithium producers, with oil producers ExxonMobil and Occidental Petroleum carrying out lithium pilot projects in Arkansas and California, respectively. A Nikkei Asian Review report mentioned that General Motors and Canadian company Americas Lithium are also planning a mine in Nevada.

　　Meanwhile, China still occupies an important position in the world lithium market. Ink analysis, the United States in the talent and other supporting systems on the short board is still obvious, which leads to the construction of its supply chain system is always less than expected. For example, the United States large lithium miner Yabao company in the global establishment of production lines, but in addition to the factory in China, the other production lines either late to put into operation, or put into operation after the problem, the core reason lies in the lack of industrial supporting system and the shortage of engineers. On the other hand, cost issues will also make the U.S. lithium mining and processing industry is facing a lack of competitiveness.